Four Adgemis Pubs Sell for $120m, Gemi Investors Get Zero

Receivers have sold four venues from bankrupt publican Jon Adgemis’s portfolio for more than $120 million, leaving second-tier lenders Gemi Investments and Archibald Capital with substantial losses after first-ranking creditor Deutsche Bank claimed the proceeds.

McGrathNicol was appointed as receiver to manage five assets of Public Hospitality’s portfolio in October, four of which have now sold.

Millinium Capital Managers managing director Tom Wallace has picked up a total of six properties previously owned by the bankrupt pub baron, three of which were part of the recent receivership sale.

Wallace acquired South Bondi Hotel for $60 million, Hotel Diplomat at Potts Point for $21 million and the Empire Hotel at Annandale for $20.5 million, according to industry sources.

Claridge House sold for $20 million to an unidentified buyer.

Wallace’s earlier acquisitions of former Adgemis properties include the Kurrajong Hotel at Erskineville for $20 million in September, the Town Hall Hotel at Balmain for $9.5 million in July and the Rose, Shamrock and Thistle at Paddington for $20 million in July.

Wallace’s total spend on former Adgemis venues now totals $150 million.

The combined sale proceeds of the four venues recently sold come in at around $120 million, short of Deutsche Bank’s debt position and leaving Gemi Investments clients with no return on loans totalling $60 million in principal and interest.

Gemi told investors on Thursday they would receive nothing from the four properties because the sales did not cover what was owed to senior lenders.

▲ Gemi Investments is proposing a $419.3-million two-tower scheme at Castle Hill.

Archibald Capital, run by Ben Madsen, is expected to lose $50 million to $60 million on its loans.

Colliers’ Matthew Meynell said the sales process attracted more than 580 enquiries and 46 first-round offers from some of Australia’s most recognised hospitality and tourism investors.

Adgemis declared bankruptcy in October owing more than $1.8 billion to creditors, largely comprising personal guarantees on money borrowed to build his portfolio.

MC Lawyers & Advisers partner Milan Cakic is investigating potential legal action against Gemi over its losses to investors.

Gemi’s exposure to Adgemis venues represented nearly 15 per cent of its total portfolio.

Gemi is also holding Channel 7’s Adelaide office and was attempting to develop a 17,623sq m block at Castle Hill after failing to sell the site.

The pub sales follow the mortgagee-in-possession sale of Adgemis’s Rose Bay family home for $12 million in 2025.

Developer Alex Sicari of Mathieson Property has since filed plans for an $86.9 million, 70-apartment scheme at the 2A Conway Avenue site.